BILL NUMBER: SB 1065INTRODUCED BILL TEXT INTRODUCED BY Senator Monning FEBRUARY 18, 2014 An act to amend Section 116 of the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGEST SB 1065, as introduced, Monning. Insurance. Under existing law, automobile insurance includes, among other things, a contract of warranty or guaranty that promises service, maintenance, parts replacement, repair, money, or other indemnity in the event of loss or damage to a motor vehicle. Automobile insurance also includes an agreement that promises repair or replacement of a motor vehicle, or part of a motor vehicle, after a mechanical or electrical breakdown at either no cost or a reduced cost to the agreementholder. This bill would make technical, nonsubstantive changes to those provisions. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 116 of the Insurance Code is amended to read: 116. (a) Automobile insurance includes insurance of automobile owners, users, dealers, or others having insurable interests therein, against hazards incident to ownership, maintenance, operation, and use of automobiles, other than loss resulting from accident or physical injury, fatal or nonfatal, to, or death of, any natural person. (b) Automobile insurance also includesanya contract of warranty,or guaranty that promises service, maintenance, parts replacement, repair, money, or any other indemnity in event of loss of or damage to a motor vehicle or a trailer, as defined by Section 630 of the Vehicle Code, or any part thereof from any cause, including loss of or damage to or loss of use of the motor vehicle or trailer by reason of depreciation, deterioration, wear and tear, use, obsolescence, or breakage if made by a warrantor or guarantor who is doing an insurance business. (c) Automobile insurance also includesanyan agreement that promises repair or replacement of a motor vehicle, or part thereof, after a mechanical or electrical breakdown, at either no cost or a reduced cost for the agreement holder. However, automobile insurance does not include a vehicle service contract subject to Part 8 (commencing with Section 12800) of Division 2, or an agreement deemed not to be insurance under that part. (d) The doing or proposing to doanybusiness in substance equivalent to the business described in this section in a manner designed to evade the provisions of this section is the doing of an insurance business.